Since 2012, the US has received 80% of global deals to medical device startups. California alone takes more deals than any non-US country.

Where is this data coming from?

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Where is this data coming from?

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The United States is the center of startup investing for many industries and the medical device industry is no exception.

Globally, Israel ranks a distant second to the US in medical device deals and funding. Recent investments in Israel include V-Wave‘s $28M Series B from a trio of Israel-based investors including BioStar Ventures, Pontifax, and TriVentures, as well as InSightec‘s $22M Series D from investors including the Israel-based Elbit Medical Technologies.

V-Wave is developing an atrial shunt intended to reduce left atrial pressure and heart attack frequency. InSightec is developing focused ultrasound and MRI technology with neurosurgical, gynecological, and oncological applications.

Within the US, California is the center, which is not surprising, and Massachusetts takes second place.

briefing: Digital Health Trends for 2018

Deals by country

Accounting for 80% of deals to medical device companies, the United States has dominated investment into the industry over the past four years. Israel and the UK rank second, each with a 4% share of global medical device deals. Germany, Canada, and France grab third with a 2% share each.

One of the most active medical device investors, High-Tech Gruenderfonds, made two deals into Germany-based startups in 2016; SeNostic, which develops diagnostic technology for neurodegenerative diseases, and Abviris, a developer of screening tools for HPV-induced oral cancer.

The remaining 7% of medical device deals is spread widely among 24 countries including Switzerland, India, and the Netherlands, none capturing much more than 1% of the global total.

Funding by country

Total equity dollars in the sector are also heavily concentrated, with the US taking an 82% share of equity funding to private companies in the space. Since 2012, Israel has been leading the pack outside of the US with a 6% share of total funding dollars.

In third, Switzerland, the UK, France, and Germany account for 2% each. The remaining difference is split between a number of countries, none making up more than 1%.

Deal share within US

As in the tech sector, California also commands a large share of domestic investment into medical device companies. The state has dominated US-based deals to medical device startups, with a 31% share of all US deals since 2012 and 38% in 2016 year-to-date. When compared to the rest of the world, California is participating in more deals to medical device companies than the top 5 non-US countries combined. Two such deals include the $120M Series G in Proteus Digital Health and $93M Series F in Halt Medical.

Massachusetts has consistently ranked second, averaging a 10% share of US based deals into private medical device companies. Minnesota, Pennsylvania, and Texas have battled it out for third over the years, with Pennsylvania taking the bronze in 2016 year-to-date with a 6% share of deals.